8/8/2019 MISsub mod01-2

1/34

MANAGEMENT INFORMATION

SYSTEMS

Lesson 2

8/8/2019 MISsub mod01-2

2/34

Management information system (MIS)

An MIS provides managers with information andsupport for effective decision making, and providesfeedback on daily operations

Output or reports, are usually generated throughaccumulation of transaction processing data

Used for generating reports including inventory

status reports, financial statements, performancereports etc.

Reports are essential for analyzing different aspectsof business.

Help to answer 'what-if' questions like what would

be the effect on cash flows of a company if the creditterm is changed for its customers etc.

Each MIS is an integrated collection of subsystems,which are typically organized along functional lineswithin an organization

8/8/2019 MISsub mod01-2

3/34

CHARACTERISTICS OF MIS

Integrated user machine system

Supports operations, management, analysis &decision making functions

Utilizes computer hardware, software, manualprocedures, models for analyzing, planning,control & decision making and a database

Provides reports with fixed and standard formats

y Hard-copy and soft-copy reports

Uses internal data stored in the computer

system

End users can develop custom reports

Requires formal requests from users

8/8/2019 MISsub mod01-2

4/34

SOURCES OF MANAGEMENT

INFORMATION

Schematic

8/8/2019 MISsub mod01-2

5/34

Corporate

databases

ofinternal

data

Databases

ofexternal

data

Databasesof

valid

transactions

Operational

databases

Transactionprocessing

systems

Managementinformation

systems

Decision

support

systems

Executivesupport

systems

Expert

systems

Business

transactions

Input and

error list

Drill-down reports

Exception reports

Demand reports

Key-indicatorreports

Scheduled

reports

Employees

Corporate

intranet

Application

databases

8/8/2019 MISsub mod01-2

6/34

OUTPUTS OF A

MANAGEMENT INFORMATION SYSTEM

Scheduled reportsProduced periodically, or on a schedule (daily, weekly,

monthly)

Key-indicator reportSummarizes the previous days critical activities

Typically available at the beginning of each day

Demand reportGives certain information at a managers request

Exception reportAutomatically produced when a situation is unusual

or requires management action

8/8/2019 MISsub mod01-2

7/34

SCHEDULED REPORT EXAMPLE

Daily Sales Detail Report

Prepared: 08/10/xx

Order#

CustomerID

SalesRep ID

ShipDate Quantity Item # Amount

P12453 C89321 CAR 08/12/96 144 P1234 $3,214

P12453 C89321 CAR 08/12/96 288 P3214 $5,660

P12453 C03214 GWA 08/13/96 12 P4902 $1,224

P12455 C52313 SAK 08/12/96 24 P4012 $2,448

P12456 C34123 JMW 08J/13/96 144 P3214 $720

8/8/2019 MISsub mod01-2

8/34

MANAGEMENT INFORMATION SYSTEMS

FOR COMPETITIVEADVANTAGE

Provides support to managers as they work to achieve

corporate goals Enables managers to compare results to established

company goals and identify problem areas and

opportunities for improvement

8/8/2019 MISsub mod01-2

9/34

FUNCTIONALASPECTS

MIS is an integrated collection of functional

information systems, each supporting particular

functional areas.

Schematic

8/8/2019 MISsub mod01-2

10/34

An Organizations

MIS

Financial

MIS

Marketing

MIS

Human

ResourcesMIS

Accounting

MIS

Drill down reports

Exception reports

Demand reports

Key-indicatorreports

Scheduled reports

Databases

of

external

data

Databases

of

validtransactions

Transaction

processing

systems

Business

transactions

Business

transactions

Extranet

Internet

Production &

operation

MIS

8/8/2019 MISsub mod01-2

11/34

8/8/2019 MISsub mod01-2

12/34

8/8/2019 MISsub mod01-2

13/34

ACCOUNTING MIS

8/8/2019 MISsub mod01-2

14/34

The system shares all accounting reports at

different levels of management

8/8/2019 MISsub mod01-2

15/34

FINANCIAL MIS

Provides financial information to all financial

managers within an organization.

Schematic

8/8/2019 MISsub mod01-2

16/34

Uses and management

offunds

Financial statistics

forcontrol

Operational

databases

Databases

ofvalid

transactions

foreach

TPS

Transaction

processing

systems

Business

transactions

Business

transactions

Internet or

Extranet

Financial

MIS

Business

transactions

Databases of

external data

Databases of

internal data

Financial

DSS

Financial

ES

Financial

applications

databases

Customers,

Suppliers

8/8/2019 MISsub mod01-2

17/34

INPUTS TO THE FINANCIAL INFORMATION

SYSTEMStrategic plan or corporate policies

y Contains major financial objectives and oftenprojects financial needs.

Transaction processing system (TPS)y Important financial information collected from

almost every TPS - payroll, inventory control,order processing, accounts payable, accountsreceivable, general ledger.

y External sourcesy Annual reports and financial statements of

competitors and general news items.

8/8/2019 MISsub mod01-2

18/34

8/8/2019 MISsub mod01-2

19/34

MANUFACTURING MIS

Schematic

8/8/2019 MISsub mod01-2

20/34

8/8/2019 MISsub mod01-2

21/34

INPUTS TO THE

MANUFACTURING MIS

Strategic plan or corporate policies.

The TPS:

y Order processing

y Inventory data

y Receiving and inspecting data

y Personnel data

y Production process

External sources

8/8/2019 MISsub mod01-2

22/34

MANUFACTURING MIS

SUBSYSTEMS AND OUTPUTS

Design and engineering

Master production scheduling & Inventory control

Manufacturing resource planning

Just-in-time inventory and manufacturing

Process control

y Computer-assisted manufacturing (CAM)

y Computer-integrated manufacturing (CIM)

y Flexible manufacturing system

Quality control and testing

8/8/2019 MISsub mod01-2

23/34

HUMAN RESOURCE MIS

Concerned with all of the activities related to

employees and potential employees of the

organization

8/8/2019 MISsub mod01-2

24/34

Benefit reports

Salary surveys

Scheduling reportsOperational

databases

Databases

ofvalid

transactions

foreach

TPS

Transaction

processing

systems

Business

transactions

Human

Resource

MIS

Databases of

external data

Databases of

internal data

Manufacturing

DSS

Manufacturing

ES

Human

resource

applications

databases

Training test scores

Job applicant profiles

Needs and planning

reports

8/8/2019 MISsub mod01-2

25/34

8/8/2019 MISsub mod01-2

26/34

INPUTS TO THE HUMAN RESOURCE MIS Strategic plan or corporate policies

The TPS:

y Payroll data

y

Order processing datay Personnel data

External sources

8/8/2019 MISsub mod01-2

27/34

HUMAN RESOURCE MIS SUBSYSTEMS AND

OUTPUTS

Human resource planning

Personnel selection and recruiting

Training and skills inventory

Scheduling and job placement

Wage and salary administration

8/8/2019 MISsub mod01-2

28/34

MARKETING INFORMATION SYSTEM

Continuing and interacting structure of people,

equipment and procedures

Used to gather, sort, analyse, evaluate, and

distribute timely and accurate information For marketing decision makers to improve their

marketing planning, implementation, and control

8/8/2019 MISsub mod01-2

29/34

8/8/2019 MISsub mod01-2

30/34

8/8/2019 MISsub mod01-2

31/34

INPUTS TO MARKETING MIS

Strategic plan and corporate policies

The TPS

External sources:

y The competition

y The market

8/8/2019 MISsub mod01-2

32/34

MARKETING MIS SUBSYSTEMS

AND OUTPUTS

Marketing research

y Web based market research

Product development

Promotion and advertising

Product pricing

8/8/2019 MISsub mod01-2

33/34

USES OF MIS FEW EXAMPLES

Operations

Tactics

Strategy

Government

Consumers

Employees

Culture

Businesses

Privacy

Education

Company

8/8/2019 MISsub mod01-2

34/34

E-GOVERNMENT

Government Representatives and Agencies

y Providing Internet access to government data.

y Democracy and participation

Getting data and information

Providing feedback and participating

y Votingwill we ever see electronic or online

voting?

y Information warfare

y Will the Internet consolidate the world?